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The Middle East and Africa dairy market is being aided by the rising dairy consumption in the region and the increasing imports of dairy products. Dairy consumption, across the world, has been increasing, with fresh dairy products and processed dairy products expected to grow at 2.1% per annum and 1.7% per annum respectively in the forecast period of 2021-2026. The global growth in dairy consumption is also affecting the Middle East and Africa dairy market with a rising consumption of dairy items like butter and cheese. In North Africa, butter and cheese account for almost 11% and 18% respectively of the total dairy consumption in the region. Butter and cheese consumption is expected to contribute to nearly 12% and 13% of the dairy consumption in the Middle East region in the coming five years.
The growing global trade was driven by the rising demand for dairy from Middle Eastern countries like United Arab Emirates and the increasing milk exports from markets in Africa. The global demand for SMP, driven by the processing industry for its application in the preparation of dry mixes, bakery, and confectionary products, is also aiding the global trade of SMP. In 2017, SMP trade expanded by 8.9% globally as compared to 2016. Lower international prices also encouraged countries to buy more SMP. Algeria increased its SMP imports by 42.4% in 2017, as compared to the previous year, attaining 170 thousand tonnes. In 2017, WMP imports also continued to rise in the Middle East and Africa dairy market despite witnessing a decrease in its export share in the global market for a third successive year. The United Arab Emirates increased its imports of WMP by almost 13% from 2016, in 2017. The UAE also increased its imports of milk in 2017 by 17.6%.
Butter and cheese are the other major dairy products imported to the Middle East and Africa with Saudi Arabia and Egypt being the major importers. The growing imports of butter and cheese reflect upon the changing patterns of consumption in the region. The Middle East and North Africa region, specifically, is expected to retain its position as a major import destination for butter and cheese in the forecast period, with Egypt being a significant importer of butter and Saudi Arabia a significant importer of cheese. In 2017, Saudi Arabia cheese imports grew by 3.8% as compared to 2016, to reach 164 thousand tonnes. However, the total volume of dairy exports to the Middle East and North Africa region is falling but is balanced out by the increase in the value of dairy exports, which grew by 3.6% in 2017 due to the rising global dairy prices.
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SanCor Cooperativas Unidas Limitada, Mastellone Hermanos SA, Nestle S.A., Cooperativa Central Dos Produtores Rurais De Minas Gerais Ltda, Groupe Lactalis, Alpina Productos Alimenticios S.A., and Lacteos Betania SA are the key players in the Middle East and Africa dairy market. The report looks in-depth into their market share, capacity, and latest developments like capacity expansions, mergers and acquisitions, and plant turnarounds.
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